First you must learn the difference between an asset and a liability. If you want to work easy you must make your money work hard, it’s all about being responsible with money. You must look at your money as a tool to help you get more. The earlier you learn this the faster you will acquire wealth. Owning assets is a sure way to increase your net worth, if you own nothing you will have nothing. Buying things that depreciate in value or bring you no return on investment (ROI) is a liability, which is what separate the rich from the poor. Understanding inflation and what it does to the value of the dollar, which greatly affect your every day life is necessary. The mass printing of the dollar for stimulus during the Covid-19 pandemic, shows us it has no value it can be printed out of thin air and it is not scarce.

Investing in scarcity assets is that of The logical thinker. Assets and commodities combats inflation because the money system is broken. The rich do not work for money because they understand owning assets and allowing your money to work for you, is the sure way to stay wealthy. You should own assets that work for you and earn money even when you’re sleeping. It could be an online business real estate or it can be dividend paying stocks. You must find a way to make money even when you are not working and create multiple streams of income. One form of income to do this is called residual income. Residual income is income that one continues to receive after the completion of the income-producing work.

Examples of residual income include royalties, rental/real estate income, interest and dividend income, and income from the ongoing sale of consumer goods (such as music, digital art, or books), among others. “If you understood residual income, you would walk through a brick wall to get it” was a quote by Art Jonak. The importance of understanding money and different types of income is essential when making your money work for you on the journey to financial freedom. Think about how money and time correlates, working a 9-5 you get paid for time and labor so when you spend carelessly you are wasting precious time. Budgeting and saving is a necessary discipline, knowing what’s coming in and what’s  going out daily. Do not save after spending, but spend what is left after saving. If you buy things you don’t need, soon you will have to sell things you need. Make investments to create a second source, depending on a single income is suicide. Making your money work for you is a step closer to financial freedom.

Gregory Standley